Cash-rich Canadian banks have been on a shopping spree in the United States in recent months as they try to find growth away from their home turf where the Big Six banks already control nearly 90% of the market.
The deal announced on Tuesday values each share of Cowen at $39, representing a premium of nearly 10% to the company’s last closing price. Cowen shares rose 8% in premarket trading.
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Cowen was founded more than a century ago and offers investment banking and brokerage services to its clients.
Earlier this year, TD signed its largest-ever deal when it agreed to buy regional U.S. bank First Horizon (FHN.N) for $13.4 billion to expand in the southeastern region of the country. The companies expect the deal to close in the first quarter of 2023.